Average variable cost is defined as
A) total variable cost divided by quantity.
B) quantity divided by total variable cost.
C) the change in total variable cost divided by the change in quantity.
D) the change in quantity divided by the change in total variable cost.

Question

Quizplus · Accepted Answer

Average variable cost is the variable cost per unit of output, which is calculated by dividing the total variable cost by the quantity of output produced. Therefore, choice A is the correct definition of average variable cost.

Average Variable Cost Is Defined as